Travelers reports fourth quarter and full year results

Travelers reported net income of $2.5 billion in Q4 2025, and $6.3 billion for the year.

Full year combined ratio of 89.9% improved 2.6 points over the prior period due to an improvement in the underlying combined ratio (2.3 points) and higher net favorable prior year reserve development (0.7 points), partially offset by higher catastrophe losses (0.4 points).

Full year net investment income of $3.9 billion pre-tax ($3.2 billion after-tax) increased 10% compared to 2024.

Full year net written premiums of $44.3 billion increased 2% compared to 2024.

During the earnings call, CEO Alan Schnitzer discussed the shift from “Innovation 1.0” to “Innovation 2.0,” which is powered by AI “and not too far off quantum computing.”

Travelers has thousands of engineers, data scientists and analysts building AI and other sophisticated technology solutions, with dozens of generative AI tools already in production.

More than 50% of all claims are now eligible for straight-through processing, with 2/3 of eligible customers choosing this path, and another 15% of all claims are processed with advanced digital tools. Last week, Travelers launched a natural language generative AI voice agent to handle FNOL and adoption rates have exceeded expectations. The CEO shared that due to these and other efficiencies, the company is consolidating four claim call centers down to two, and that the number of employees in the claim call center has decreased by one-third.

In personal insurance, a proprietary AI model now scores every property in the portfolio that is about to renew. Accounts with the highest probable risk of loss are flagged for human underwriters, while GenAI summarizes the data for them, reducing handle time by 30%.

Travelers invested over $1.5 billion in AI and technology initiatives in 2025.